Area real estate market ignites

Saturday

Sep 26, 2009 at 12:01 AMSep 26, 2009 at 6:30 AM

Home listings, open houses and house sales have been popping this summer, local Realtors say, spurred by the federal new homebuyer tax credit. But they warn anyone planning to use the credit better make an offer soon, to get a closing before the Nov. 30 deadline.

The local housing activity reflects national trends reported Friday, a 0.7 percent increase in home sales for August that was the fifth straight monthly increase and the strongest report in 11 months.

BEN BEVERSLUIS

Home listings, open houses and house sales have been popping this summer, local Realtors say, spurred by the federal new homebuyer tax credit. But they warn anyone planning to use the credit better make an offer soon, to get a closing before the Nov. 30 deadline.

The local housing activity reflects national trends reported Friday, a 0.7 percent increase in home sales for August that was the fifth straight monthly increase and the strongest report in 11 months.

In the Holland-Zeeland-Saugatuck area, single-family home sales this summer were ahead of the same period last year. From June 1 through Friday last year, 576 homes sold, with 584 this year.

The average sales price last year was $164,252; for 2009 it was $149,896, according to numbers from the West Michigan Lakeshore Association of Realtors.

Dale Zahn, CEO of the group, saw some indications of promise. Given the economic reports, he said, it appears we may — “and I stress the word may” — have hit the bottom.

“We’re actually seeing people smiling for a change in the industry. Actually, some of them are feeling very upbeat,” Zahn said, noting new people are entering the business again.

Curt Carini, broker with Carini and Associates Realtors, said things definitely have been picking up.

He credits the federal tax credit, which gives back 10 percent of the home price up to $8,000 for first-time buyers.

“I would say it’s a majority of our sales have something to do with that. It definitely is helping,” he said.

But Carini warned that buyers hoping to use the credit better be signing buy-sell agreements this week, with lenders beginning to put in place new rules that could delay closings. He’s advising sales people to not write any more short sales or foreclosed properties because they take longer to close and might not meet the deadline.

Others in the business agreed.

“If they waited for that steal, that foreclosed property, they’ve waited too long,” Zahn said. More typical sales, cash sales or those with large amounts down, can move more quickly, some in less than 30 days.

There is talk in Washington of extending or even expanding the tax credit, with heavy lobbying by the Builders and the National Association of Realtors are lobbying strongly in Washington for an extension or even increase in the tax credit, warning things could take a turn for the worse after the credit expires.

Carini senses the same. “Everything I hear from lenders and Realtors is, if the credit goes away, I hate to see what January and February will look like. It isn’t going be pretty.”

Meanwhile, agents report a lot of activity.

Zahn said the tax credit has been “enormously well received” and spurred business for members who used it.

“Buyers are coming out of the woodwork,” Zahn said.

Luke Bouman, a Realtor with Coldwell Banker Woodland Schmidt, said he expected the increased activity to continue for a while, particularly in the $150,000 to $200,000 range. He said some of the people selling to those first-time homebuyers are turning around and buying.

“The good news,” he added, “is there’s a lot of sellers motivated right now.”

And he added that sales are not just foreclosures or short sales. Only four of his 26 closings this year were foreclosures, he said.

“A lot of foreclosures have sold, but that’s definitely not all that’s selling.”